Measuring Inequality of Opportunity With Imperfect Data [electronic resource] : The Case of Turkey / Aran, Meltem
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TextPublication details: Washington, D.C., The World Bank, 2010Description: 1 online resource (42 p.)Subject(s): Consumption | Consumption expenditures | Data set | Data sets | Decreasing function | Economic efficiency | Economic growth | Economic Theory & Research | Empirical analysis | Empirical studies | Equity and Development | Gini coefficient | Health, Nutrition and Population | Household income | Income | Income differentials | Income inequality | Inequality | Inequality index | Macroeconomics and Economic Growth | Measuring inequality | Per capita consumption | Policy research | Population Policies | Poverty Reduction | Product | Rural Poverty Reduction | Social policyAdditional physical formats: Aran, Meltem.: Measuring Inequality of Opportunity With Imperfect Data.Online resources: Click here to access online Abstract: The measurement of inequality of opportunity has hitherto not been attempted in a number of countries because of data limitations. This paper proposes two alternative approaches to circumventing the missing data problems in countries where a demographic and health survey and an ancillary household expenditure survey are available. One method relies only on the demographic and health survey, and constructs a wealth index as a measure of economic advantage. The alternative method imputes consumption from the ancillary survey into the demographic and health survey. In both cases, the between-type share of overall inequality is computed as a lower bound estimator of inequality of opportunity. Parametric and non-parametric estimates are calculated for both methods, and the parametric approach is shown to yield preferable lower-bound measures. In an application to the sample of ever-married women aged 30-49 in Turkey, inequality of opportunity accounts for at least 26 percent (31 percent) of overall inequality in imputed consumption (the wealth index).
The measurement of inequality of opportunity has hitherto not been attempted in a number of countries because of data limitations. This paper proposes two alternative approaches to circumventing the missing data problems in countries where a demographic and health survey and an ancillary household expenditure survey are available. One method relies only on the demographic and health survey, and constructs a wealth index as a measure of economic advantage. The alternative method imputes consumption from the ancillary survey into the demographic and health survey. In both cases, the between-type share of overall inequality is computed as a lower bound estimator of inequality of opportunity. Parametric and non-parametric estimates are calculated for both methods, and the parametric approach is shown to yield preferable lower-bound measures. In an application to the sample of ever-married women aged 30-49 in Turkey, inequality of opportunity accounts for at least 26 percent (31 percent) of overall inequality in imputed consumption (the wealth index).
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